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UPDATE 1-Wolters Kluwer H1 profit up, keeps outlook

Published 07/29/2009, 04:22 AM
Updated 07/29/2009, 04:24 AM

* EBITA at 320 million euros, above forecast

* Says "confident" in keeping 2009 guidance

* Shares rise 3.1 percent

(Adds CEO, analyst comment, shares)

AMSTERDAM, July 29 (Reuters) - Dutch publisher Wolters Kluwer NV posted a rise in revenue and profit in the first half of the year, with demand for its information products remaining intact in a tough economic climate.

Shares in Wolters Kluwer rose after it reported that earnings before interest, taxes and amortisation (EBITA) rose 11 percent in the first six months of 2009 to 320 million euros. Analysts had expected 308 million euros, according to the average of nine forecasts compiled by Reuters.

Wolters Kluwer publishes professional information in legal, tax, and scientific fields. Its main rivals are Reed Elsevier and Thomson Reuters.

Chief Executive Nancy McKinstry said the company was able to increase profit thanks to cost savings, electronic revenue growth and contributions from recent acquisitions.

"Based on our performance for the first half of 2009, we are confident to reiterate our full-year 2009 guidance," McKinstry said, referring to the company's projection of keeping EBITA margin in line with 2008 and generating free cash flow of 350 million euros.

Wolters Kluwer increased free cash flow by 38 percent in the first half to 146 million euros.

Shares in the information provider rose 3.1 percent by 0820 GMT to 13.52 euros, while the DJ Stoxx European media index was up 0.5 percent.

SNS analyst Michel Veul said in a note the results "provide some more comfort."

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Revenue in the first half rose 7 percent to 1.72 billion euros from a year earlier, equal to the average estimate from the Reuters poll. (Reporting by Reed Stevenson; Editing by Erica Billingham)

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